Introduction

Beiersdorf is an international skin care company. One of its top brands is NIVEA. NIVEA products range from female face and body products to men's shaving gels through to deodorants and sun care products. NIVEA Sun is a major product. This case study looks at how NIVEA segments markets in order to target them. A segment is a slice or smaller part of a market. Each segment contains people with similar tastes or wants.

Product Segments

People buy sun care products for many reasons. Each segment has its own reason. Sun care segments include:

• Protection - NIVEA Sun protects against the harmful effects of the sun. It is the market leader by value in this segment*. This segment can be further split by skin type and where the consumer will use the product. (For instance, the effects of the sun are harsher in the tropics.)

• After Sun - This segment is growing.

• Self-tan - These are products used for cosmetic appeal.

Brand vision

NIVEA Sun has a brand vision. This is: 'To be the number 1 brand in the UK sun care market in penetration, sales and likeability'.

• Penetration - This is how much of a market buys or uses the product.

• Sales - These are measured by the number sold (volume) or by value.

• Likeability - This refers to whether the brand is enjoyed.

Consumer segments

Markets are segmented by certain factors. Two key ones are demographics and attitudes. The first is the types of people who buy. It refers to 'populations'. The second is why people buy. People were asked when they used a sun care product and why. The first relates to the Sun Protection Factor (SPF) needed. This will differ in different instances (e.g. on holiday in a hot country compared to the UK). The second relates to the type of product (e.g. an easy-to-use spray). They found five main types:

• Concerned consumers - For these, sun protection is the main reason to buy.

• Sun avoiders - These see sun care as a chore. They prefer to stay out of the sun. For this segment there are easy-to-use products.

• Sun lovers - These adore sunshine and know about SPF. They need a brand they can trust. They will then be loyal to it.

• Careless tanners - These like the sun but don't bother to protect.

• Beauty conscious - These want a good sun tan, know that protection is important, but don't really understand about SPF's.

Brand strategy

The main reason people buy is to protect against the sun. This is the central message of the brand. However, different segments require different products. Launches include:

• Spray products aimed at men that are simple to use

• Coloured 'fun' products aimed at children

• Products that offer better protection.

The education message goes out through advertising and into schools. A 'Sun Sense' primary school pack goes out to 10,000 teachers each year.

Conclusion

NIVEA Sun knows about its market segments. This means it can target them. Aiming at different segments keeps NIVEA Sun a success. It is the Number 1 protection and after sun brand in value sales in the UK*.

* Source: IRI (HBA Outlets, value sales, 52 W/E 24 Dec, 2005)